Trump's Tariffs Trigger Global Market Plunge: Dow Jones Dives 1,200 Points Amid Trade War Fears

President Trump's announcement of sweeping tariffs triggered a sharp drop in U.S. stock markets. On Thursday, the Dow Jones Industrial Average plummeted over 1,200 points, nearly 3%. The S&P 500 sank over 3%, and the Nasdaq fell over 4%. Overseas, Japan's Nikkei index dropped 2.8%, and South Korea's Kospi fell 1.1%. The tariffs, a minimum 10% tax on nearly all imports, impose higher rates on goods from the EU (20%) and Japan (24%). Economists warn of higher prices and slower U.S. growth, potentially pushing countries into recession. The tariffs represent a nearly nine-fold increase in the prevailing U.S. import tax. Stocks of import-reliant companies were hit hard, with Apple losing 9%, Nike 11%, and Amazon 7%. Trading partners are expected to retaliate with tariffs on U.S. exports. Experts warn that retaliatory tariffs will kill demand. The U.S. also imposed a 34% tax on imports from China and a 46% tariff on goods from Vietnam. The tariffs' size and scope took many investors by surprise, with some experts warning that forecasts may need to be revised if the tariffs remain in place for an extended period of time.